A honeypot is a scam that disguises itself as a promising investment project but is designed to steal your funds. It lures investors with false promises of high returns while locking away their assets.

Honeypot schemes usually follow these steps:
1. Creating a “perfect” project: Scammers build a platform or token that appears trustworthy and lucrative.
2. Simulating a vulnerability: They present seemingly accessible ways to profit, which are actually traps.
3. Trapping victims: Once funds are deposited, victims find they cannot withdraw their assets due to hidden restrictions or high fees.

Honeypot scams continue to evolve, stealing millions annually:
  •  Over $3.2 million stolen through honeypots in 2024.
  •  979 fake contracts detected in just two months.

Look for these red flags:
  •  No team information: A lack of transparency about the project’s creators is a serious warning.
  •  Hidden code: If the smart contracts are not publicly available for review, proceed with caution.
  •  Fake reviews: Suspiciously glowing comments or low activity on social media can indicate a scam.

Before investing, check for the following:
  •  Sale restrictions: Some contracts prevent you from selling tokens after purchase.
  •  High withdrawal fees: These make it nearly impossible to retrieve your funds.

Use trusted tools to evaluate projects:
  •  Honeypot.is: Detects suspicious contracts.
  •  QuillCheck: Assesses smart contract security.
  •  Detect Honeypot: Flags potential risks before you invest.

Stay safe and invest wisely!